No Reserves in Germany’s Federal Budget, Says Finance Minister

BERLIN (Reuters) – Germany’s federal authorities has reached the restrict of its fiscal capability, its finance minister mentioned, with additional financing to deal with the coronavirus pandemic, the affect of the battle in Ukraine and a local weather fund having exhausted authorities coffers.

“There aren’t any reserves within the 2022 federal finances,” Christian Lindner was quoted by information web site t-online as saying on Saturday.

He warned in opposition to granting additional monetary assist earlier than the autumn to residents to offset the affect of rising inflation. “I counsel letting the measures taken up to now take impact,” he mentioned.

In March, the federal government introduced aid price 16 billion euro ($16.8 billion) to assist shoppers deal with hovering power prices and scale back dependence on Russian fuel.

Germany usually operates its finances with a deficit restrict of 0.35% of gross home product. It goals to reintroduce that rule, often known as the debt brake and suspended for the reason that begin of 2020, in 2023.

(Reporting by Riham Alkousaa; modifying by John Stonestreet)

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